Today’s Millennials are less homogenous and far more unpredictable. Some buy property before they’re in serious partnerships, while others wait until they’re well into their 30s. Unfortunately, Millennials entered the workforce when the global economy was at an all time low. This together with stagnant wages, high student loans and a shaky property market has made them reluctant to risk defaulting on a mortgage. Instead, many opt for long-term rentals and spend their money travelling.
The irony is that for any real estate company, Millennials make up the largest buying demographic. How do you entice your biggest target market, when they’d rather spend money on a plane ticket then save it towards a bond deposit? To tap into their mindset and make property investment appealing to them, you need to understand the following:
- Millennial needs and wants
Millennials live in a world of remote working, connectivity and convenience. They embody entrepreneurship, worldwide travel and when it comes to work, pride themselves on careers which are personally fulfilling. Unlike Gen-Xers, they’re less interested in retirement security, suburban living and working for a boss their entire lives. Instead, they’re inspired to own their own businesses, and therefore, putting capital towards start-ups trumps investing in property.
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Your real estate company should bear in mind that added to this, their generation is burdened by debt and reduced income mobility. Long-term rentals are extremely appealing because they’re able to reduce potential financial risks. Millennials feel it’s a far safer risk to lose rental deposits, than a house or a down payment.
This is why apartment living is incredibly popular. It’s low maintenance and low-risk living. Running a startup from home, or sharing a co-working space nearby and not having to maintain a large garden of corporate office is hugely advantageous. That’s not to say that Millennials intend to rent forever, because current trends indicate that homeownership does increase as they age.
However, any successful real estate company needs to be aware that when they do decide to live on the outskirts of the city, they’ll still want all the benefits of city living like good public transport and walkable neighbourhoods. And, if they are looking to buy, they’ll want a something that’s cost effective and convenient.
- Tapping into the Millennial Market
If you want Millennials to invest in property, your real estate company needs to market properties in areas that appeal to them. Urban and suburban neighbourhoods with access to public transport, parks, restaurants, stores and amenities within walking distance from residential blocks are highly prized. They love the comforts that come with living in suburbia but crave the vibrancy of the city.
Be cognisant that the Millennial mindset influences both housing and work arrangements. Millennials are the start-up generation, who love sharing work space and favour open-planned to cordoned-off office pools. Consequently, this sharing economy manifests itself in the way office space is leased out. Landlords are realising that the smartest investors are looking at ways to attract start-ups. This has lead to the rise of precincts and the type of inclusive lifestyle where amenities, entertainment and home are in close proximity.
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That being said, the Millennial lifestyle isn’t the only influence that’s responsible for impacting the property market. Looking after the environment and the submersion of technology in modern life has produced an array of trends every real estate agency should be clued-up on.
And remember, Millenials love the possibility of living abroad. So, if you’re thinking of expanding your international property portfolio, then perhaps you’d like to check out wonderful Esmeralda apartments in Calpe.